First of all, you are getting a lot of great advice here. Second, I am doing some math here, and it seems to me that you are still a young person. So we start with two pieces of good news!
When we owe money and we are late ,or unable to make payments, it sometimes feels like bees are buzzing around our heads. Many of us, including me, have been there. One person here told you to start by taking a DEEEEEEEEEEEEEEEEEEEEEEEEEP breath! You are not alone!
I want to start by saying that the WORST thing you can do, is ignore each creditor. They hate that. The BEST thing you can do is WORK WITH THEM. Instead of waiting for them to call YOU. Call THEM! And let them know that you are willing to work with them. Be honest. Be ridiculously polite! Be respectful. They are people too. You will find that when you are willing to work to resolve credit issues, 99 out of 100 people are willing to help.
So here is my advice:
- Pay them off! Now I know that sounds easier than it is. But you are telling us that one of your "eight" issues is $56.00! So why not start with that one? Now we are down to seven.
- You mention "utilities". I am guessing that those bills might be our next targets. I would begin by calling each utility company and setting up a payment plan. You might be surprised to know that utility companies are regulated. The last thing in the world a utility company, or our government, wants to see is someone shut off and going without heat or electricity. So call them. Talk to them. And see if you can set something up. You will be surprised to see what they will do to help you. You could get going for as little as $30 per month or something affordable. They are always willing to work on lower amounts if you allow them to automatically deduct from a checking or savings account. And it will help you to reestablish a relationship with them directly.
- The eviction: Well, that is a problem. We might want to know what portion of that $3400 was rent, deposit etc....I am guessing you can settle an eviction in either small claims court, or regular court. for a reduced amount. I do however, have to ask how everyone deserted you and (I am assuming), yours was the only name on the lease. But, once again, i am suggesting that even a court of law, will come up with a settlement amount and place you on an agreed payment plan.
- Credit Card Companies: Messy stuff. They are going to place you with a collection agency and they are going to come after you hard. And then they are going to "sell" the debt to another collection agency. And everytime you miss a payment, it is going to show up on your report as a separate account. So you could end up having three delinquent accounts for the same loan! My advice is to begin by calling each credit card company and seeing if you can get your account reinstated with them ONLY FOR PAYMENT. They may have a "rehab" program, whereby if you pay the amount you agree upon for a period of time you will no longer be placed into collection status. If the credit card company refuses to resume the amount, then work with the collection agency on a payment plan that is workable for you. Again, you will be surprised how willing creditors are to work with someone who is willing to pay them.
- THE BEST ADVICE I CAN GIVE YOU IS THIS: STOP BORROWING MONEY!!!!!! Dont believe in the quick fix. You have to be patient. "You cannot walk five miles into the woods and get out in five minutes."
I have found that some in these forums believe that, if you can open new lines of credit, it will provide a shortcut to getting your score reinstated. I am not one of them. Good old fashioned fiscal responsibility is the best medicine. Pay your debts. Pay them in full. Pay them regularly. budget your money. Dont dig the hole any deeper.
Finally: I am guessing that the refinance for that car lease/loan is running in the low 20% interest range. If you pay that loan regularly for a period of six months to one year, you might be surprised to find that you can refinance at a much lower rate with another institution. I suggest a Credit Union. They are usually more willing to take a flier on someone with spotty credit history than conventional banks. And do not EVER FILE FOR BANKRUPTCY. All that does is tell everyone in your future that you are a guy who borrows money and is not willing to pay it back. My guess is you are somewhere around $10,000 to $15,000 in debt total. Dont mess your life up for that.
My history: Nine years ago, I was divorced. My credit went from 800 to 520. Amex took my card away...Visa took my card away...I paid 21% to "refinance" a lease car for my son. Today my score is 727 with Experian. I climbed back much in the way I describe above. Picked up a lot of humility along the way. And I learned that, when I borrow money I make a promise to pay it back. I kept those promises. And I hope you do too. You should be proud for working hard to repair your credit. I am sure you will. Just hope that you learn lessons along the way that will assure that you never have to face such things again. That is the value in all this. Good Luck.
